Impact Dashboard 2021 - Media Development Investment Fund
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Impact Dashboard 2021 Photo: Hukumonline 1 / For more information visit www.mdif.org
04 Executive
Content summary
06 Mission
statement
08 Dashboard
introduction
12 Current
portfolio
16 Impact on client
business
17 Special focus: Covid-19
20 Reach
24 Revenues
28 Viability
32 Client evaluation of impact
34 Client impact
on society
36 Special focus: Covid-19
40 Corruption and accountability
44 Social issues
48 Elections
2 / Impact Dashboard 2021Photo Katadata 3 / For more information visit www.mdif.org
Executive
summary
Portfolio in 2020
$114.5m total assets $5.7m of new 76% provided as equity 9 companies and 2
under management investments in 16 and 24% as loans countries new to MDIF
media companies
Clients in 2020
47 media companies 89% in countries where 5,800 media workers, at least 90 awards
in 29 countries press freedom is limited 44% of them women received
4 / Impact Dashboard 2021Impact on client business
Reach Revenues Viability Client evaluation
262m 322m 63% 59%
people received their in revenue generated clients classified as clients seeing positive
information from MDIF by MDIF clients having low or moderate change due to work with
clients in 2020 in 2020 risk in 2020 MDIF in 2020
190% 205% 11% 85%
average reach average revenue average risk rating clients seeing positive
increase after 5 years increase after 5 years increase after 5 years change due to MDIF
of working with MDIF of working with MDIF of working with MDIF media advisory
Client impact on society
Corruption and Social issues Elections
accountability
78% 89% 44%
clients published corruption and clients published social issues clients published election
accountability information information that had information that had
that had impact in 2020 impact in 2020 impact in 2020
Special focus: 88% clients saying Covid-19 had a negative
impact on their business 95%
Covid-19 clients published Covid-19
70% clients seeing the economic impact and information that had impact in 2020
decline in revenues as the biggest challenge
5 / For more information visit www.mdif.orgMission
statement
Media Development Investment Fund (MDIF) invests in independent
media around the world providing the news, information and debate that
people need to build free, thriving societies.
Why we are here Providing access to capital
Timely, accurate, relevant information is critical to free MDIF clients are starved of capital because they work in
societies. It enables fuller participation in public life, holds environments with poorly developed banking systems,
the powerful to account and protects the rights of the distorted markets and unfavorable investment climates.
individual. Often, they work in transition economies or under
governments that are hostile to the idea of free and
independent media. In all cases, a lack of funds is the main
How we choose clients obstacle to their growth and development and seriously
and areas of operations hampers their ability to be commercially viable and self-
sustaining.
MDIF invests in independent media companies in a range
of countries where access to free and independent media
is under threat. Clients are selected based on three broad The changing landscape
criteria: mission impact in relation to investment; potential of media and investment
for long-term viability; editorial integrity.
In the last decade, a technological revolution has transformed
the media business and the way people access news and
How we work information across the world. MDIF continues to actively
MDIF financial investments include affordable loans, equity seek new clients around the world with innovative ideas
investments, loan guarantees and technical assistance for expanding the availability of independently produced
grants. MDIF mobilises other investors to maximise the information for future investments.
impact of its financing. MDIF seeks to establish long-term
relationships with its clients, which may involve advice and
assistance in business planning, media management and
other technical support.
6 / Impact Dashboard 2021Photo Radio Daljir 7 / For more information visit www.mdif.org
Dashboard
introduction
At MDIF, impact assessment is a critical part of our work. Since 2005, we
have published our Impact Dashboard to publicly present the findings
of our annual analysis. We focus our impact assessment efforts on two
areas: direct impact of our investment on clients and our clients’ impacts
on their societies.
Level 1: Impact on client businesses To explore the extent to which our support impacts
on client businesses, we evaluate how a given media
MDIF provides affordable debt and equity financing to company’s reach, revenues and viability evolve over the
independent media businesses in challenging environments. course of their involvement with MDIF. Although we view
Our investments are additional to the activities from the our investment as a contributor to, not the sole cause of our
commercial market, in that they are extended to media clients’ growth, the collected data allows us to monitor the
businesses who could not obtain adequate financing from companies we support and helps us make more informed
commercial sources on an economically feasible basis, or decisions around our portfolio.
those that could do so only under conditions that would
threaten their editorial independence. To add context to performance trends we present client
evaluation of impact, where we gather testimonials
Alongside the financial additionality, MDIF contributes with of MDIF clients about the quality of our support and
non-financial value to the investee companies by providing improvements their businesses have experienced. The aim
business and management support through our Media is to gather meaningful information at investee level to
Advisory Services (MAS) and fostering good corporate better understand MDIF impact – both in terms of financing
governance and financial practices. We hope that with this and the venture support – and to assess whether we are
support investees will get the most out of our financing and achieving our purposes as agents of change.
grow resilient, resourceful businesses that can continue
serving their communities and making a difference. The special focus of this year’s Impact Dashboard is Covid-19
and the disruption it had on clients’ performance. Although
our sample is not representative, and thus, inadequate for
1
H
amilton, J.T. (2016) ”Democracy’s Detectives: The Economics of Investigative Journalism”
2
World Bank CommGAP (2009) “Media Effects, Technical Brief”.
3
World Bank (2009) “The Media and Development: What’s the Story?, Working Papers”
8 / Impact Dashboard 2021generalisations, it nevertheless offers useful insights into To monitor how our investees create impact, we focus on
the wider situation in the global media industry during the their reporting and information sharing around corruption
Covid-19 crisis. and accountability, social issues (like the environment,
gender, minorities, immigration or LGBTQ+) and elections,
and explore the ultimate social outcomes that followed.
Level 2: Impact on societies Those areas have been selected based on existing research,
from studies on media affects2 and how they influence
We invest in independent media businesses because of their
people, to work on the role of the media in development
positive impact on society and as a way of helping people
and democracy3. The relevance of the issues covered is
build free, thriving societies. From changing lives to changing
mirrored in the United Nations Sustainable Development
laws, media produce many forms of public benefit that make
Goals (SDGs). This year we also look at investees’ work
our governments more transparent and less corrupt, and
around Covid-19 that had a significant impact on their
our societies more informed and inclusive. Take watchdog
communities.
journalism that tells hard-hitting truths: each dollar spent on
an investigation can yield hundreds or thousands of dollars
Again, we are very careful not to attribute causality unduly
in benefits1. Gains are shared by the whole community who
– we view our clients’ work as only partly responsible for
can experience the galvanising change brought about by
changes that occur in their communities.
the reporting, whether it is start of a citizen-lead protest, the
enactment of a new law or the dismissal of an incompetent
official.
MDIF’s approach to impact assessment
IMPACT LEVEL 1 IMPACT LEVEL 2
MDIF outputs Client outputs
MDIF Client Society
Loans, equity and Reporting and
technical assistance information sharing
Does MDIF’s financing and Special Do MDIF’s clients have a
technical assistance improve focus: positive impact on their
client sustainability? Covid-19 societies?
Funders, Impact Dashboard
investors,
the public Individual client studies
9 / For more information visit www.mdif.orgImpact Key impact
Impact area Key metrics and focus areas Data sources
level question
Impact Does MDIF’s Clients - cumulative reach and its YoY changes Client survey, Google
on client financing expand their Analytics, 3rd party audience
- average and median individual YoY changes
business and technical reach measurement, Reporters
assistance - median individual YoY growth rate (CAGR) Without Borders’ World Press
improve client Freedom Index
- distribution by press freedom in the country
sustainability?
Clients - cumulative revenues and their YoY changes Client survey, company
increase their financial statements, World
- average and median individual YoY changes
revenues Bank’s Classification of
- median individual YoY growth rate (CAGR) Countries by Income
- overall portfolio leverage
- distribution by income classification
Clients improve - median risk rating of loan portfolio Client survey, audited MDIF
or maintain their Risk Rating, World Bank
- YoY changes in risk classification
viability Political Stability and Absence
- distribution by client risk classification of Violence Index, World Bank
Ease of Doing Business Index
- distribution by political stability and business friendliness in
the country
Clients share their - % of clients that experienced changes in their company Client survey
evaluation of because of their involvement with MDIF
impact
- % of clients that experienced changes in their company
because of our media advisory
Client Do MDIF’s Clients share - % of clients reporting and sharing information on corruption Client survey and publishing
impact clients have information on and accountability that created impact records, Transparency
on a positive corruption and International’s Corruption
- % of types of social outcomes said to have followed
society impact accountability Perceptions Index
on their - distribution by corruption perceptions in the country
societies?
Clients serve as a - % of clients reporting and sharing information on social Client surveys and publishing
source of reliable issues that created impact records, Social Progress Index
information, with
- % of types of social outcomes said to have followed
a focus on social
issues - distribution by social progress in the country
Clients - no. of recorded elections Client surveys and publishing
encourage records, World Bank Voice
- % of clients reporting and sharing information on election
democratic and Accountability Indicator
that created impact
participation,
with a focus - % of types of social outcomes said to have followed
on elections
- distribution by the level of voice and accountability in the
country
10 / Impact Dashboard 2021Impact Key impact
Impact area Key metrics and focus areas Data sources
level question
Special Do MDIF’s Clients share their - clients’ perceptions of Covid-19 impact, biggest challenges Client survey
focus: clients evaluation of and measures introduced to tackle the crisis
Covid-19 experience Covid-19 impact
impact Covid-19
impact?
Does their Clients carry - % of clients reporting and sharing information on Covid-19 Client survey and publishing
work around out Covid-19 that created impact records, Lowy Institute’s Covid
Covid-19 have reporting Performance Index
- % of types of social outcomes said to have followed
a positive
impact - distribution by the performance of countries in managing
on their the pandemicy
societies?
Data sources provide an accurate and reliable insight into our work. Given
the still-evolving status of tracking impact and the sweeping
To get the most accurate picture of our and our clients’ changes in the media sector, we are constantly learning and
impact, we combine various data sources, including data striving to improve our approach.
readily available through internal quarterly monitoring,
our annual Impact Dashboard survey and from several As we continue to address these and other challenges, we
external data sources. For instance, to monitor the online believe that full transparency regarding our methodology
reach of our clients, we rely on data gathered by Google is important both for accountability and learning. For more
Analytics. To add context, across different impact areas, information on how we track impact and collect Dashboard
we also quantify survey responses against comparable and data see the table on the next page and read “How we
pertinent indicators, such as the World Press Freedom Index track…” explainers in the related sections of the Dashboard.
published by Reporters Without Borders, Social Progress For a more detailed overview, including description of the
Index by Social Progress Imperative, or, for example this challenges and how we try to address them, see the full
year, the Lowy Institute’s Covid Performance Index. Impact Dashboard Methodology on our website.
Methodology
While the outlets we invest in are diverse in terms of their
business models, geographic focus and media type, we try
to employ standardised metrics that would be relevant for
the largest number of clients in our portfolio. Our impact
measurements follow a core principle of prioritising
efficiency and reflect the day-to-day business realities of
media companies we support. We acknowledge that the
data we collect has its limitations and that the absence of a
relevant control group means that we are unable to attribute
impact to a particular intervention. Our objective is to collect
data with an appropriate degree of rigour that allows us to
11 / For more information visit www.mdif.orgCurrent
portfolio
Over 25 years in operation, MDIF has invested in 128 Out of all investments conducted last year, seven were in
independent media businesses across 44 countries around Asia, five in Europe, five in Latin America and one in Africa,
the world, from Slovakia to Lesotho and from Peru to underlining the geographical reach of our work. In 2020,
Malaysia. As of December 2020, we had provided $240 we also extended our operations to two new countries – El
million in financing in total, including $209 million in loans Salvador and Moldova.
and equity investments, $31.2 million in media advisory
and grants, and $0.6 million through a secure payment We finished 2020, a year defined by the coronavirus
service for independent media. pandemic, with $114.5 million total assets under
management. The largest share of our assets under
In 2020 alone, we carried out 18 investments in 16 media management was allocated in Europe (76%), with 15 out of
companies in 13 countries, amounting to $5.7 million. Out 47 companies in the portfolio based in the region, followed
of the total, 76% ($4.3 million) was provided as equity, while by Asia at 14% (12 companies), Africa at 8% (8 companies),
24% ($1.4 million) was distributed in loans. Across different and Latin America at 1.5% (10 companies), in addition to
funds, seven media companies were assisted with follow- 0.5% allocated to 2 international projects with global reach.
on financing and nine new companies joined our portfolio,
including four online news sites, a business publisher, a At the end of the year, our global investment portfolio
national tv channel, a video publishing company, a women- included 47 independent media companies spread across
only social platform and a knowledge-sharing platform. 29 countries. From digital startups to national multiplatform
Key metrics:
• In 2020, MDIF’s portfolio included 47 media companies spread across 29 countries employing 5,800
media workers, 44% of them women.
• 89% of our clients operated in countries where press freedom is limited and 83% in countries perceived
as struggling with corruption problems.
• 59% of MDIF clients were recognising with awards. Over the year, clients received at least 90 professional
honours and accolades.
12 / Impact Dashboard 2021broadcasters – in keeping with our mission statement – they It is the people who work for our clients and their dedication
provide the news, information and debate that people need and professionalism that have made this possible. Last
to build free, thriving societies. year, our investments supported the work of more than
5,800 journalists, publishers and other media workers,
In 2020, 59% of MDIF clients included in our annual survey 44% of them women. In particular, female participation
reported receiving awards that year. Out of those presented among management stood at 45%, and among newsroom
with prizes, 16 were recognised with national awards, leadership at 35%.
11 with international awards and 3 with local awards. We
counted as many as 90 honours and accolades earned by The challenges of the pandemic were exacerbated by a
our clients in 2020, 35 more than in 2019. This remarkable continuing decline in media freedom globally. 38% of MDIF-
number speaks to the dedication and professionalism that supported media organisations included in our annual
media companies supported by MDIF exhibited in their work questionnaire reported experiencing attacks, arrests or
in 2020 despite the highly unfavourable environment. harassment in the past year.
MDIF clients winning Employee gender distribution
awards in 2020 of MDIF clients in 2020
59% of MDIF clients were 44% of MDIF clients’ employees in
recognising with awards in 2020 2020 were women
MDIF’s assets under management by region4
Europe AFRICA
Botswana, Lesotho, Nigeria, Malawi, Senegal, Somalia, South
Africa, Zambia, Zimbabwe
ASIA
Cambodia, India, Indonesia, Malaysia, Nepal, Philippines
EUROPE
Asia
73.5% 75.7% Armenia, Bosnia and Herzegovina, Bulgaria,
Croatia, Georgia, Kosovo, Hungary, Moldova, Montenegro,
Africa 8.3% 13.9% North Macedonia, Poland, Russia, Serbia, Slovakia, Ukraine
Latin America
LATIN AMERICA
Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, El Salvador,
9.6% 8.0% Guatemala, Guyana, Paraguay, Peru, Venezuela
7.4% 1.8%
*OTHER
Outlets with global reach based in the Netherlands and USA
Cumulative investments Current investments
4
Other (which covers outlets with global reach based in the Netherlands and USA) stood at 1.2% for cumulative investments and 0.7% for current investments.)
13 / For more information visit www.mdif.orgPortfolio summary 2016 2017 2018 2019 2020 Cumulative
(unaudited)
Assets under management $66.8m $70.1m $63.9m $115.2m $114.5m n/a
Number of total clients 48 47 42 42 47 128
Number of new clients 2 4 2 4 9 n/a
Number of countries 28 26 25 28 29 44
New investments made $21.5m $3.7m $3.0m $55.2m $5.7m $209m
Principal recovered $3.0m $1.96m $1.86m $1.8m $387k $74.5m
Interest, dividends & capital gains collected $1.2m $917K $263k $867k $174k $42.8m
Returned to investors $6.4m $9.1m $2.0m $6.1m $3.4m $57.4m
Portfolio in context
MDIF’s mission reflects an abiding commitment to a free The chart on the next page presents portfolio allocations
press. By design we invest in countries where press freedom by country by RWB’s World Press Freedom Index and by
is limited and under threat, be it from political interference the Corruption Perceptions Index, showing that MDIF
and media capture or harassment and physical attacks on investments are concentrated in countries with restrained
media workers and where access to reliable information press freedom and a reputation for corruption. Each
can play a key role in supporting public accountability and bubble represents a country, while the size of the bubble is
transparency. determined by the amount invested. The further the bubble
is to the right, the less free the country, and the higher on
At the end of 2020, 42 out of 47 media companies the chart, the more corrupt the country is perceived to be
we supported operated in countries where the media by its citizens.
environment is partly free or not free, according to The
World Press Freedom Index published by Reporters Without
Borders (RWB)5. 39 out of 47 clients in 2020 were in
countries perceived as struggling with corruption problems,
as measured by Transparency International’s Corruption
Perceptions Index6.
5
-25 “Free” (referred to as “good situation” and “satisfactory situation” by RWB), 25.01-35 “Partly free” (referred to as “problematic situation” by RWB) and 35.01-100
0
“Not free” (referred to as “difficult situation” and “very serious situation” by RWB)
6
0-49 “More corrupt”, 50-100 “Less corrupt”
14 / Impact Dashboard 2021MDIF’s assets under management by press
freedom5 and corruption perceptions6
Free Partly free Not free
0
More corrupt
Corruption Perceptions Index
Avg. Corruption Score
50
Less corrupt
Avg. Press Freedom Score
100
0 25 35 60
The World Press Freedom Index
15 / For more information visit www.mdif.orgImpact
on client business
Covid-19 defined 2020 for people and media businesses their losses and giving direction to their business decisions.
around the world. Thus, in addition to the usual analysis It is incredibly challenging to measure whether our support
of changes in clients’ performance, the focus of this Impact is effective and to what extent it makes a difference for the
Dashboard is the disruption the pandemic brought to our companies we support, but as a testament to clients’ hard
clients. When the virus forced newsrooms to close their work – and to our great relief – all but one of our clients
doors and make changes to their daily operations (see managed to make it through the year, and its closure was
Special focus section on the next page), it also slashed not related to Covid-19.
many of their revenue sources, as described in the Client
revenue section of this report. The economic crisis resulting The value of our support is reflected in our clients’
from the pandemic exposed and aggravated underlying evaluation of impact, including accounts of how MDIF
structural and operational issues, impacting overall media financing as well as strategic advice and venture support
sustainability, as shown in the Client viability section. have impacted on their media companies. The results, as
As a counter-trend, audiences for high quality media rose presented in this report, validate our mission and attest to
dramatically, as presented in the Client reach section. our 25-year track record of providing financing and media
advisory to help public interest media companies develop
Unsurprisingly, our main focus in 2020 was on helping sustainable businesses, while safeguarding their editorial
clients survive the havoc wrought by the pandemic, limiting independence.
MDIF’s approach to measuring impact on client business
MDIF outputs: Does MDIF’s financing
loans, equity and and technical Clients expand their
technical assistance assistance improve reach
client sustainability?
Clients increase their
Special revenues
MDIF Clients focus:
Covid-19
Clients improve or
maintain their viability
Clients share their
evaluation of impact
16 / Impact Dashboard 2021Special focus: Covid-19
No
impact
Positive
3%
impact
9%
It is impossible to look back at 2020 without assessing To giveSmall negative to the scale of the challenge, for a large
perspective
impact
the impact of Covid-19 which, apart from being a global majority of respondents – 88% – Covid-19 had a negative
12%
pandemic and public health crisis, has severely affected impact on their business, ranging from hugeHuge(35%), moderate
negative
the global media industry. Its economic consequences (41%) to small negative impact (12%). Only 3%impact
said that the
35%
have exacerbated challenges facing media all over the pandemic had no impact on their business, while 9% said
world – from bringing to light unsustainable cost bases to that the impact was positive, as shown on the graph below.
accelerating decline in print circulations due to lockdown
restrictions. Here we present some of the findings of our
annual Impact Dashboard questionnaire, which surveys our Moderate negative
impact
media clients, and look at how the pandemic affected their 41%
operations.
Perception of Covid-19 impact Perception of challenges amid Covid-19
No
impact Economic impact and decline
Positive in revenues
3%
impact
9% Physical and mental health
and safety of the workforce
Small negative
impact Changes in newsgathering
12% practices
Huge negative
impact Dis-and misinformation
35% around Covid-19
Organising people and
systems for remote work
Moderate negative 0 1 2 3 4 5
impact
Average rating
41% (1= smalest, 5 = biggest challenge)
Key metrics:
Economic impact and decline
in revenues
• 88% ofand
Physical MDIF clients
mental healthsaid that Covid-19 had a negative impact on their business.
and safety of the workforce
• Only 3% said that the pandemic had no impact on their business.
Changes in newsgathering
• 70% of MDIF clients
practicessaw the economic impact and decline in revenues as the biggest challenge.
Dis-and misinformation
around Covid-19
17 / For moreOrganising
informationpeople
visit www.mdif.org
andThe biggest challenge was, by far, the economic impact and presented with a list of 17 different measures and asked to
decline in revenues, with 70% of respondents rating it as 4 indicate those introduced to tackle the crisis, 70% picked 5
or higher, where 5 represents the biggest challenge and 1 measures or more, while 23% ticked 10 or more. Working
represents the smallest challenge, with an average rate of from home (87%), reduced expenses for travel and on-
4.1. In comparison, the second most-rated were changes in the-ground reporting (77%) and suspended planned salary
newsgathering practices as well as the physical and mental increases (60%) were the three most common measures
health and safety of the workforce (both rated 2.9), as taken (see graph below). When asked, which out of all
presented on the graph on the page before. measures introduced had the greatest positive impact, the
respondents picked working from home and the introduction
To limit the adverse impact on their businesses, media had to of new/alternative revenue sources (each 23%).
be agile in their response to rapidly changing circumstances.
When, as part of the annual Impact Dashboard survey,
Measures introduced to tackle the crisis
Working from home
Reduced expenses for travel & on-the-ground reporting
Suspended planned salary increases
Introduced new/alternative revenue sources
Suspended planned new hires
Borrowed/reached into savings
Reduced stringers/freelancers
Cut brand promotion
Reduced hours for some staff
Reduced/cut distribution channels
Reduced salaries/payroll
Scaled back product/service offer
Added/enhanced distribution channels
Cut software and other subscriptions where possible
Laid off or furloughed staff
Reduced publication frequency
Other
0% 20% 40% 60% 80% 100%
Pecentage of respondents introducing the measure
18 / Impact Dashboard 2021Covid-19 in clients’ own words
The decline in revenues in terms of newspapers
Cash flow management was the biggest sold and advertising revenue severely
challenge as we lost 15% of advertising affected our profitability and cashflows. The
revenues and 40% of revenues from the events printing press also faced regular challenges
business in comparison to 2019. Both revenue with sourcing technical assistance (for plant
lines are the two most important for us maintenance) from abroad due to lockdowns
Client in Europe and border closures
Client in Africa
Reducing revenue from advertising by 30% and
adjusting expenses by laying off employees and
In an editorial office with a small number of
reducing all employees’ salaries by 25% was
people, every lockdown and illness had a very
very challenging. Then, we had to change the
negative effect on the work. The drop in income
company structure to put emphasis on readers’
had a bad effect on salaries, which resulted in bad
revenue, which requires changes in the way of
morale and the departure of several journalists
working and the way editors view relations with
Client in Europe
the audience
Client in Asia
In our journey so far, we have relied heavily on
The Covid-19 crisis deepened the economic
brand-driven sponsorship as a revenue line. With
recession in our country, causing two effects
Covid-19 brands cut down on these spends,
on the business environment: the main one
and that had an impact. To err on the side of
was the difficulty in closing new commercial
caution, we decided to significantly cut down our
agreements and generating new members. In
expenses, reducing the team size, spends on
addition, it caused financial difficulties due to
acquisition, engagement and more. We have had
the delays in the payments by brands that were
to operate in a much leaner fashion, while still
advertising with us.
trying to do more
Client in Latin America
Client in Asia
19 / For more information visit www.mdif.orgClient reach
Measuring clients’ reach is central to both our financial and In 2020, 262 million people around the world got their
mission objectives. In mission terms, increased reach means news and information from MDIF clients – a record high in
that more individuals have access to the timely, accurate our 25 years of work and double the total reach in 2019 –
and relevant information, vitally important at all times, but with the overall increase largely attributable to new digital
particularly during a pandemic. In financial terms, audience companies joining the MDIF portfolio and their substantial
is an essential part of building a robust media organisation reach adding to the cumulative MDIF reach, but also record-
and is tied to various revenue streams, such as leveraging breaking audience numbers registered during the peak days
advertisement dollars, subscriptions, memberships or print of the Covid-19 crisis.
circulation.
Total annual client reach by type, 2016-2020
250M
200M
Reach (millions)
150M
100M
Digital
50M
Traditional
0
2016 2017 2018 2019 2020
Key metrics:
• In 2020, 262 million people received their news from MDIF clients, 233 million online and 29 million
through traditional media.
• The Covid-19 pandemic has drawn record numbers of people to quality news and information, with 312
million people reached by MDIF clients in March 2020.
• After five years of working with MDIF, client reach increased on average by 190% (a median of 34%).
20 / Impact Dashboard 2021How we track our clients’ reach
To calculate reach, MDIF collects online and offline audience data from its clients. We measure traditional reach, including
newspaper, television and radio audiences, on an annual basis through our annual Impact Dashboard survey. For newspaper
reach, we use the average edition circulation for each publication, including multipliers (an industry measure for when more
than one person reads each copy) when applicable. These data are sourced from our clients’ operational records. For
television and radio, we use the client’s average audience share as a proportion of the total population, based on information
from local audience research firms, when available, or client estimates. Digital reach is collected on a quarterly basis and
includes client-operated websites producing news and information content. For the purposes of the Impact Dashboard, we
look at the median monthly users (previously referred to as unique visitors) according to Google Analytics for the given year.
For more on the methodology we use to collect and analyse our impact data, see the Impact Dashboard Methodology
section on our website.
Last year, 233 million people were reached through digital Total client reach throughout 2020
and only 29 million through traditional media, including TV,
radio and print. This is the fourth consecutive year in which As WHO declares Covid-19 a pandemic,
more people received news from MDIF clients online than MDIF clients reach 312 million people
with news and information.
through traditional means, a transformation underpinned
by the changes in MDIF’s investment strategy, with each
300M
year more investments allocated to digital-only companies
and the legacy media companies either exiting our portfolio
or increasingly shifting towards digital. 250M
Reach (in millions)
More importantly, though, the results reflect the continuing 200M
changes in global media consumption habits, with people
increasingly spending more time online, away from their TV 150M
sets and printed newspapers. Particularly in 2020, digital
media use increased as people in lockdown sought latest
100M
updates, information and news about the pandemic without
leaving the house and as quickly as possible.
50M
MDF clients experienced their peak audience in mid-March,
coinciding with the WHO declaring Covid-19 a pandemic, 0
reaching as many as 312 million people that month. At a
July
January
February
March
April
May
June
August
September
October
November
December
time when lives were at stake, media have been playing a
key role, tirelessly bringing much-needed updates, and
21 / For more information visit www.mdif.orgkeeping checks and balances on the government response Change in client reach from
on behalf of citizens. But following the unprecedented first year with MDIF
spike in traffic, the so called “Corona bump” wore off, with
audience numbers back to pre-Covid levels, as presented 200%
on the graph on page 21.
On an individual level, clients active in both 2019 and 2020 Average
increased their reach by 42% on average between the two 150%
years. In fact, 90% of MDIF-supported media increased
(84%) or maintained (6%) their reach, while 13% doubled
% Change
their reach between 2019 and 2020.
100%
We also found that clients involved with MDIF for at least
five years saw their reach increase by an average of 190%
between their first and fifth year (a median of 34%). Over the
same period, a median year-over-year growth rate (CAGR) 50%
amounted to 8%.
Overall, taking into consideration all data gathered since we
Median
first started compiling audience figures, seven in ten clients
0
increased or maintained their reach from the beginning to
latest year of their relationship with MDIF (74%) and four in From year 1 From year 1 From year 1 From year 1
to year 2 to year 3 to year 4 to year 5
ten doubled their audience or better (42%). Average growth
from a client’s first year of involvement to their latest was
546% (a median of 35%). Median year-over-year growth rate
(CAGR) for the full investment term stood at 8%.
Client example
El Búho is a regional media company based in training and advice from the consultant and hard
Arequipa, Peru, and a well-recognised and influential work by the El Búho team, the news site’s audience
local brand synonymous with quality journalism. more than tripled, increasing by 301.7% in terms of
Founded as a printed weekly magazine in 2000, median monthly users from 2019 to 2020. By adding
El Búho became a digital platform in 2014. Last reporting that could appeal to a more national
year, MDIF matched the company with a marketing audience and strengthening its SEO results, El Búho
strategist and digital media expert specialised in opened up to a new set of clients beyond the usual
the Latin American market, who provided long- regional advertisers and has started earning revenue
term mentoring support in digital advertising and from programmatic advertising.
sales. One of the goals was to develop a plan for
strengthening El Búho’s digital presence. With
22 / Impact Dashboard 2021Clients’ reach in context
MDIF-supported companies reach various readers, listeners In 2020, the largest share of our clients’ audience — 71%—
and viewers across the world, from rural communities in lived in Asia, followed by Europe at 22%, Africa at 4% and
India to business professionals in Ukraine. They operate in a Latin America at 3%. Additionally, 259 million people – 99%
range of countries where press freedom is under threat and of the audience MDIF clients served – lived in partly free or
where access to reliable information can play a key role in not free countries, according to the World Press Freedom
supporting public accountability and transparency. Index published by Reporters Without Borders7.
Client reach in 2020 by the World Client reach in 2020 by regions
Press Freedom Index7
200M
Latin America
Africa 3%
4%
150M
Reach (in millions)
Europe
22%
100M
Asia
71%
50M
0
Not free Partly free Free
7
0-25 “Free” (referred to as “good situation” and “satisfactory situation” by RWB), 25.01-35 “Partly free” (referred to as “problematic situation” by RWB) and 35.01-100
“Not free” (referred to as “difficult situation” and “very serious situation” by RWB)
23 / For more information visit www.mdif.orgClient revenues
To assess clients’ performance, we also monitor clients’ Special focus section). When the virus began its global
revenue patterns. As an investor, our primary goal is to march, advertising and other business partnerships
promote the long-term financial well-being of the media largely collapsed as companies cut marketing budgets
companies we support, making them less vulnerable to and alternative established sources of income, such as live
future risks and capable to withstand or adapt to shocks events, disappeared.
and stresses. Beyond the clear fiscal logic for growing
company’s revenues, financial independence enables media The overall picture painted by an analysis of clients’ revenues
to safeguard their editorial independence and provide the last year clearly, and unsurprisingly, indicates that the
news, information and debate uninterrupted. pandemic had a major impact on their businesses. In 2020,
we registered a total of $322 million in client revenues, a
In 2020, the media industry was put under tremendous 26% decrease from 2019. Revenue leverage – the ratio of
financial strain, exacerbating an already existing trend total client revenues to total assets under management –
of changing revenue flows, disrupted business models also decreased by 25%. In 2020, it stood at 1:2.8, meaning
and increased competition. The biggest challenge that that each $1 managed by MDIF leveraged $2.8 in client
the Covid-19 emergency posed was, as indicated by our revenues.
clients, the economic impact and decline in revenues (see
MDIF revenue leverage in 2020
Each $1 invested by MDIF leveraged
$2.8 in client revenues in 2020 MDIF assets Client revenues
$
under management leveraged
Key metrics:
• In 2020, MDIF clients generated $322 million in revenues, with each dollar managed by MDIF leveraging
$2.8 in client revenues.
• Clients’ revenues worsened during the Covid-19 pandemic: among companies active in both 2019 and
2020, 53% saw their revenues decrease from year to year.
• After five years of working with MDIF, client revenues increased on average by 205% (a median of 85%).
24 / Impact Dashboard 2021How we track our clients’ revenues
Revenues refer to the total amount of client income from circulation, advertising, printing services and other activities before
any costs or expenses are deducted. Revenue data is readily available through quarterly reports submitted to MDIF by
clients and their annual income statements. Clients report revenue data in either US dollars (USD) or their local currency. To
ensure comparability, we convert all local currency figures to USD using the publicly established conversion rate on the final
day of the calendar year. The overall portfolio leverage is calculated by dividing the total portfolio revenue for the year by the
total assets under management at the end of the year.
For more on the methodology we use to collect and analyse our impact data, see the Impact Dashboard Methodology
section on our website.
Among companies active in both 2019 and 2020, over half years. Average change from 2019 to 2020 stood at -1% (a
saw their revenues decrease from year to year (53%), with median of -4%). These are remarkably positive results given
drops ranging from -1% to -68%. The other half increased the immense challenges created by the pandemic and are a
(28%) or maintained their revenues (19%), with only one testament to the professionalism, creativity and resilience
client managing to double their revenues between the two of our clients.
Total annual client revenues, 2016-2020
400M
Revenues ($)
300M
200M
100M
0
2016 2017 2018 2019 2020
25 / For more information visit www.mdif.orgWithin the dark reality, clients proved that there are Change in client revenues
glimmers of hope and possibilities. The emergency showed from first year with MDIF
the importance of experimenting with alternative revenues
and proved that sustainable news organisations should
have several sources of income. According to our annual 200%
Impact Dashboard survey, when asked about their main
sources of revenue in 2020, 71% of clients picked at least 3 Average
sources or more and 35% at least 4 or more. Additionally,
when advertising dollars got pulled back, many of the clients 150%
turned to subscription, membership, and donations to
% Change
make up for lost income and diversify their revenue mix. In
fact, after advertising (picked by 76%), it was reader revenue
100%
(38%) that was the most common source of income among
MDIF clients.
Median
Long-term analysis also paints a more positive picture. 50%
Media companies involved with MDIF for at least five
years saw their revenues increase by an average of 205%
between their first and fifth year (a median of 85%). Over the
same period, a median year-over-year growth rate (CAGR)
0
amounted to 6%. Seven in ten increased their revenues
from the beginning to latest year of their relationship with From year 1 From year 1 From year 1 From year 1
to year 2 to year 3 to year 4 to year 5
MDIF (68%) and almost three in ten doubled their revenues
or better (29%). Average growth from a client’s first year of
involvement to their latest was 276% (a median of 34%),
while a median year-over-year growth rate of 6% (CAGR) for
the entire investment term.
Client example
Malaysiakini is the leading political news site adjusting the membership offer and ramping up
in Malaysia, providing news in English, Bahasa newsletters to increase engagement. It catalysed
Malaysian, Chinese, and Tamil to 10 million people much-needed growth: from the end of January to the
each month. It started subscriptions way back in end of November, Malaysiakini grew its subscribers
2002, when few media companies were doing so. In by 47.7%. Malaysiakini’s overall revenue mix is also
2020, with advertising dollars shrinking due to the shifting from a 70/30 split between advertising and
pandemic, it was critical to drive up reader revenue. subscriptions to closer to 50/50, in line with longer-
To assist them, MDIF engaged a mentor in area of term ambitions of reducing reliance on advertising.
reader revenue and consumer monetisation. The
intensive mentorship and workshops helped to
drive the building of a new subscription system,
26 / Impact Dashboard 2021Client revenue in context
MDIF-supported media businesses operate in different In 2020, the largest share of our clients’ revenues — 85%—
financial conditions, from mature markets in Europe to fast- were raised in Europe, followed by Asia at 7%, Africa at 5%
growing economies in Asia. We recognise that undoubtedly and Latin America at 3%. Additionally, $261 million were
it is easier to generate revenue in richer countries where ad generated in high income countries, according to the World
spending is higher and more people are willing to pay for Bank classification.
news.
Client revenues in 2020 by World Bank’s Client revenues in 2020
Classification of Countries by Income by regions
250M
Latin America
Africa 3%
Asia 5%
200M 7%
Revenues ($)
150M
100M
50M
Europe
0
85%
High income MIddle income Low income
27 / For more information visit www.mdif.orgClient viability
Through our financing and business and management rating tool is not applicable to equity clients) increased from
support, MDIF aims to create resilient, resourceful, and 20% in 2019 to 37% in 2020. Meanwhile, 63% of companies
innovative media businesses, strong enough to maintain were classified as low-risk (16%) or moderate-risk (47%)
their editorial independence and fulfil their critical role companies.
of providing society with relevant timely and reliable
information. Thus, as a part of our annual measurement, Among clients active in both 2019 and 2020, 13% maintained
we also review clients’ viability, an area closely tied to our their risk rating from year to year, while 87% saw their risk
activities and mission. level rise. Between 2019 and 2020, the median risk rating of
our loan clients increased from 5.8 to 6.5, a historically high
Media viability was particularly affected in 2020. From level but still within the moderate risk range on the nine-
strategy and revenue to workflows and products, running point scale.
a media company has always been challenging, but the
ongoing pandemic and its economic consequences have Overall, taking into consideration all data gathered since
exacerbated the difficulties facing media all over the world, we first started our annual risk monitoring, our median risk
forcing forward the debate on and experimentation in how rating oscillated between 4.5 and 6.5 on the nine-point scale,
media can remain – or become – viable. which puts our historical median risk rating at 5.1, squarely
within the moderate range.
According to our externally audited risk-rating tool
developed in-house and used to monitor viability, at the
end of 2020, the number of high-risk loan clients (the risk-
Key metrics:
• In 2020, 63% of MDIF loan clients were classified as having low or moderate risk.
• Clients’ viability worsened during the Covid-19 pandemic: among companies active in both 2019 and 2020,
87% saw their risk rating rise from year to year.
• After five years of working with MDIF, client risk rating increased only slightly, by 11% on average (a median
of 5%).
28 / Impact Dashboard 2021How we track our clients’ viability We assess viability from an individual media organisation’s perspective. Clients’ financial viability determines the overall sustainability of the MDIF loan portfolio clients (the risk-rating tool is not applicable to equity clients) and the strength and weakness of a given investment. Calculated using an MDIF-generated risk-rating scale, it is updated regularly, and the entire process is reviewed annually by an independent auditor to ensure the validity of the scores. The indicators are aggregated to form a nine-point scale with one indicating the lowest level of risk and nine the highest. On this scale, investments are assigned to one of three categories: a risk rating of seven or above is considered high risk, between seven and five is moderate risk and below five is low risk. For the purposes of the Impact Dashboard, we look at the financial viability metric at the end of each year, focusing on seven indicators, namely: 1. Earnings/operating cash flow trends 5. Position within industry 2. Asset/liability value 6. Management and controls 3. Financial flexibility/debt capacity 7. Financial reporting 4. Industry segment health For more details on the composition of the risk rating score, see the Impact Dashboard Methodology on our website. MDIF risk scores, 2016-2020 2016 2017 2018 2019 2020 High 27% High 24% High 23% High 20% High 37% Moderate 57% Moderate 55% Moderate 57% Moderate 57% Moderate 47% Low 16% Low 21% Low 20% Low 23% Low 16% 29 / For more information visit www.mdif.org
Change in client risk rating
Despite the uncertain and highly precarious media business from first year with MDIF
environment, including the most recent effects of the
Covid-19 pandemic, we found that clients involved with 100%
MDIF for at least five years saw their risk rating increase only
slightly, by an average of 11% between their first and fifth
year (a median of 5%) and by 25% from a client’s first year of
involvement to their latest (a median of 19%). 75%
These have been and will continue to be challenging times,
% Change
but we look forward with optimism. We work hard to ensure
that our investees are better off than they would be in the 50%
absence of our support, with our efforts focused on helping
them to emerge from the emergency leaner and more
resilient. We have already seen many of them go far beyond
survival in 2020, finding opportunities in the crisis. To our 25%
great relief, in 2020, all but one of our clients managed to
stay in operation, and its closure was not related to Covid-19. Average
0 Median
From year 1 From year 1 From year 1 From year 1
to year 2 to year 3 to year 4 to year 5
Client example
GK is a small digital outlet based in Ecuador that Advisory Services. The new position helped GK define
focuses on producing long-form journalism and a clear cost structure and quickly and proactively
providing context to complex political and cultural respond to projected cash shortages triggered by
narratives. Founded by two talented reporters, the the Covid-19 pandemic. While in the previous year
company was strong editorially, yet, when it started the company carried heavy losses, GK kept a tight
growing, the lack of a solid financial foundation grip on costs and finished 2020 with a 10% net
started taking a toll on the company’s operations. margin. In addition to financial discipline, GK also
In the past year, MDIF helped GK to restructure experienced a change in organisational culture, with
its finance department and managerial team. The finance now considered a fundamental part of the
outlet brought in a CFO, whose profile and job company, along content and tech.
description and selection process were designed
and undertaken with the assistance of MDIF’s Media
30 / Impact Dashboard 2021Client viability in context
While focusing our work on the financial aspect of the Stability and Absence of Violence Index was -0.31, as
viability of individual media organisations, we are aware measured by the World Bank’s -2.5 to 2.5 scale, where higher
that there are many other factors in the media environment scores indicate greater political stability.
that influence the functioning of media businesses. In many
countries, challenging business, political and regulatory The chart below presents our loan portfolio by each of
conditions work against independent and sustainable media. the above-mentioned World Bank indices and show a
Without enabling conditions, even the most innovative concentration of MDIF investment in countries with medium
business model cannot ensure long-term viability. levels of political instability, yet with a broadly suitable climate
for business. The further an investment is to the right, the
In 2020, the average World Bank Ease of Doing Business more politically stable the country the client operates in, and
country rating for our portfolio was 67.87 on a 1-100 the higher on the chart, the more business friendly. The size
scale, with higher scores indicating a better environment of the circle corresponds to the size of the loan.
for business operation. Additionally, the average Political
Portfolio World Bank Ease of Doing Business Index8
and Political Stability and Absence of Violence Index9
Less political stability More political stability
100
business-friendly
More
Ease of Doing Business Index
Avg. Doing
business score
50
business-friendly
Less
Avg. Political
Stability score
0
-2 -1 0 1 2
Political Stability and Absence of Violence Index
8
1-50 “Less business-friendly”, 50-100 “More business-friendly”
9
-2.5-0 “Less political stability”, 0-2.5 “More political stability”
31 / For more information visit www.mdif.orgClient evaluation of impact
We also go beyond numerical performance indicators of their involvement with MDIF (35% remained neutral and
changes in reach, revenues and financial viability and ask 6% disagreed). Most importantly, 100% of the changes that
clients directly to evaluate our effectiveness in helping to occurred as a result of the involvement with MDIF were
support the growth of their businesses. The process involves viewed as positive, with a selection of client testimonials
the collection of examples of change at investee level and the below.
aim is to gather testimonials speaking to the quality of our
support. The collected data is particularly relevant during Moreover, out of all investees that reported receiving
emergency situations, like Covid-19, and helps us determine strategic advice and venture support from MDIF in 2020, six
how we prioritise our planning and efforts. out of seven said that they “strongly agree” or “agree” that
there have been changes in their company because of that
When asked to evaluate our support, three out of five support (10% remained neutral and 5% disagreed). Again,
MDIF-supported media surveyed as part of our annual 100% of the changes that occurred as a result of media
questionnaire said that they “strongly agree” or “agree” advisory from MDIF were viewed as positive.
that there had been changes in their company because of
Clients’ There have been changes in my company
because of our involvement with MDIF
perceived since we started working with them. 27% 32% 35% 3 3
changes %%
There have been changes in my company
because of MDIF's capacity building
support we received in 2020. 52% 33% 10% 5%
Strongly agree | Agree Neutral Disagree | Strongly disagree
Key metrics:
• 59% of MDIF clients agreed or strongly agreed that there had been changes in their company because of
their involvement with MDIF over the past year.
• 85% of MDIF clients who received strategic advice and venture support from MDIF in 2020 agreed or
strongly agreed that there had been changes in their company because of that support.
• 100% of the changes that occurred as a result of the involvement with MDIF or as a result of media advisory
were viewed as positive.
32 / Impact Dashboard 2021How we track client evaluation of impact
Client evaluation of impact, including accounts of experienced change, are based on survey results. As a part of the annual
Impact Dashboard survey, we ask clients whether they experienced changes in their company because of their involvement
with MDIF and, if the changes occurred, whether they were perceived as being positive or negative. We also look at the
perceived impact of our program of technical assistance. To do that, we ask clients who reported receiving capacity building
support whether they saw changes in their company because of that support and, if there were changes, whether they were
viewed as being positive or negative. In both cases, we also asked clients to describe the experienced changes in their own
words and asked them to recount the most valuable support MDIF has provided to their company.
For more details on how we track client evaluation of impact, see the Impact Dashboard Methodology on our website.
MDIF support in clients’ own words
MDIF is our best ally, partner and investor (…) Due to MDIF’s guidance we were able to steer our
In 2020, not only a loan, but also support from organisation into the right direction and create
MAS, allowed us to reorganise our financial new revenue streams. MDIF also helped us to
structure, making us a more solid and stable allocate funds in a more efficient way to ensure
company even in a year of pandemic that we survive the pandemic’s impact
Client in Latin America Client in Asia
In the initial years of MDIF involvement, the Most valuable support was financial assistance
financial contribution of MDIF as a shareholder in the form of loan funding, support for new
secured our survival. In 2020, MDIF contribution innovation projects and advice, counselling and
took the form of professional support in a very specialised consultancy on specific projects
critical period Client in Africa
Client in Europe
33 / For more information visit www.mdif.orgYou can also read
